diff -Nur texlive-20100722-source.orig//texk/kpathsea/texmf.cnf texlive-20100722-source/texk/kpathsea/texmf.cnf
--- texlive-20100722-source.orig//texk/kpathsea/texmf.cnf	2010-05-30 16:52:39.000000000 -0500
+++ texlive-20100722-source/texk/kpathsea/texmf.cnf	2011-01-24 14:38:46.317199461 -0600
@@ -61,7 +61,7 @@
 % A place for local additions to a "standard" texmf tree.
 % This tree is not used for local configuration maintained by
 % texconfig, it uses TEXMFCONFIG below.
-TEXMFLOCAL = $SELFAUTOPARENT/../texmf-local
+TEXMFLOCAL = $SELFAUTOPARENT/texmf-local
 
 % TEXMFSYSVAR, where texconfig-sys stores variable runtime data.
 % With teTeX-3.0 or later, this must be set.
